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Investing.com - Raymond James has reiterated its Strong Buy rating and $14.00 price target on Ardelyx, Inc (NASDAQ:ARDX) following oral arguments in the company’s legal challenge against the Centers for Medicare & Medicaid Services (CMS).
The case, Ardelyx, Inc v. Robert F. Kennedy Jr., centers on CMS’s decision to include Ardelyx’s drug Xphozah in the Medicare Part B end-stage renal disease (ESRD) bundle payment system.
Ardelyx has argued that bundling Xphozah creates financial disincentives for dialysis facilities to provide the drug, claiming CMS exceeded its authority under the Medicare Improvement for Patients and Providers Act by including oral-only drugs in the bundle.
The company further contends that Xphozah should not be classified as a renal dialysis service since it is self-administered at home and functions differently from other bundled treatments.
Raymond James maintains its sales projections for Xphozah at $125 million in fiscal year 2026, $163 million in fiscal year 2027, and $207 million in fiscal year 2028, noting that its current model does not account for a potential reversal of the CMS decision. The company has already demonstrated strong revenue growth of 83.9% over the last twelve months. For deeper insights into Ardelyx’s growth potential and comprehensive analysis, access the full Pro Research Report available on InvestingPro.
In other recent news, Ardelyx Inc reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company posted a net loss of $0.08 per share, which was better than the anticipated $0.13 loss. Revenue for the quarter reached $97.7 million, exceeding the forecast of $82.51 million and marking an 18.41% surprise. Additionally, net sales for Ardelyx’s key products, Ibsrela and Xphozah, exceeded consensus estimates, indicating a return to growth after a challenging first quarter. In response to these results, Raymond James adjusted its price target for Ardelyx to $12.00 from $11.00 while maintaining an Outperform rating. This adjustment reflects the strong sales performance in the recent quarter. These developments highlight Ardelyx’s improved financial position and positive outlook from analysts.
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